With growing inflation, it becomes difficult to own your own home in the city. However, thanks to government-backed initiatives that help you to buy own home in the city. These initiatives are affordable homes schemes such as - Pradhan Mantri Awas Yojana‑Urban, Maharashtra Housing and Area Development Authority (MHADA) Lottery, Delhi Development Authority (DDA) Housing Scheme, Pune Metropolitan Region Development Authority (PMRDA), and many more.  So, if you are also the one who wish to own home in the city at an affordable cost then this blog is for you to know various affordable homes schemes in India and the eligibility criteria to apply.

What Is an Affordable Homes Scheme?

The major population of India falls under middle-class group and people with low incomes. In such a scenario affordable housing scheme in India is a government-supported or state-assisted program that offers affordable residences to middle-income groups (MIG), low-income groups (LIG), and economically weaker sections (EWS). These government-backed initiatives ensure:

1. Lower rate of properties in comparison to existing market prices

2. For first time buyers - priority allotment, subsidies, financial assistance provided

3. Access to well-planned society homes with basic infrastructure

Popular Affordable Housing Scheme in India

Let’s have a glimpse of few affordable homes schemes in brief:

Pradhan Mantri Awas Yojana-Urban (PMAY-U)

1. Interest subsidies on home loans are provided to EWS, LIG, and MIG families of urban areas.

2. Collaborate with partner to build new homes, upgrade current facilities, and expand affordable housing.

Pradhan Mantri Gramin Awas Yojana

1. PM Awas Gramin provides structured houses (Pakka Ghar) to families living in rural areas – mud houses (Kaccha Ghar)

2. Financial assistance includes unit support, eco-friendly materials, and skilled labor.

Pradhanmantri Awas Yojana

1. It covers both urban and rural development under Umbrella housing mission (Housing for all).

2. It provides subsidies, beneficiary-led construction, and redevelopment of slum areas

Maharashtra Housing and Area Development Authority (MHADA)

1. State body driving housing initiatives especially in Mumbai, Aurangabad, Konkan, Nagpur, and Pune.

2. At affordable cost, development of mass housing.

Maharashtra Housing and Area Development Authority (MHADA) Lottery

1. Through lottery (online draw) Maharashtra government allots cost-effective homes.

2. Provide homes to lower and middle-income groups at lower than market price.

Pune Metropolitan Region Development Authority (PMRDA) Affordable Housing Projects

1. Well-planned and regulated townships with basic amenities provided in Pune.

2. Affordable housing projects driven with strict quality controls in private-public partnerships. 

Delhi Development Authority (DDA) Housing Scheme

1. What is DDA housing scheme? It is Delhi – state body providing affordable homes.

2. Under this initiative allotment is done through online draw where ready-to-move flats across Delhi provided to different income categories.

Why It Is Important to know Affordable Homes Scheme

Housing schemes understanding helps you in following:

1. Track opportunities to buy properties in Delhi NCR, investment opportunities in Greater Noida, property options in Faridabad and properties in Ghaziabad 

2. Identify subsidies to lower down the home loan liabilities.

3. Stop being victim of fraudulent or unregulated housing projects.

4. Access to long-term security by knowing government-verified properties

Lifestyle in Affordable Housing: What You Actually Get

Affordable housing nowadays is not limited to basics however more advanced where buyers can expect:

1. Gated community with 24x7* security 

2. Basic amenities such as water & electricity supply and waste management

3. Green parks, jogging tracks, and kid’s play zones

4. Nearby good education institutes, hospitals, and markets

5. Spacious green layouts offering sustainable building designs

Key Difference: Urban vs Rural Housing Schemes (2025–2026)

Eligibility Criteria to Receive Government Housing

1. Valid Aadhaar Card - Indian citizen

2. Fall under income bracket EWS/LIG/MIG (varies by scheme) 

3. No Structured House (Pakka Ghar) owned anywhere in India

4. First-time homebuyer mostly preferred

5. Family income limits as per income bracket EWS / LIG / MIG

6. Women or senior citizens often receive priority allotment

What to Check before Applying to Affordable Homes Scheme

1. Check official government portals to verify scheme authenticity

2. Check RERA website to verify RERA registration, RERA verified projects, and other approvals  

3. Evaluate loan eligibility and subsidy benefits 

4. Ensure accessibility of location, modes of transport, and social infrastructure.

5. Make a visit site to construction site for quality check

6. Try to scan builder’s past projects’ delivery record and reputation 

7. Confirm payment schedules, maintenance cost, and hidden charges

Conclusion

In a nutshell, as the migration of people from village to metro cities increasing over the decades, so the demand for affordable housing has been also increasing exponentially. To meet the growing needs of rising urbanization, affordable housing scheme in India is a great opportunity for people who fall under income bracket of EWS/LIG/MIG (varies by scheme). 

FAQs

1. What is PMAY-Urban?

PMAY-U is an affordable housing scheme introduced by Government of India to provide affordable homes to eligible urban households through subsidies and assistance.

2. How can I apply for PMAY-U?

You can visit Common Service Centres (CSCs) and visit official PMAY portal to apply online 

3. What is the MHADA housing lottery?

MHADA introduced online random draws known as lotteries to provide affordable houses to various income groups in Maharashtra.

4. Who can apply for MHADA lotteries?

Residents of Maharashtra with valid proof of income falling under specific category (EWS, LIG, MIG, or HIG).

5. Can I get a refund if not allotted a flat?

Yes, automatic refund of registration amount is initiated in case of unsuccessful applicants.